Idacorp Inc (NYSE: IDA)

Sector: Utilities Industry: Utilities - Regulated Electric CIK: 0001057877
Market Cap 7.25 Bn
P/B 2.58
P/E 28.01
P/S 4.41
ROIC (Qtr) 4.58
Div Yield % 2.77
Rev 1y % (Qtr) -0.78
Total Debt (Qtr) 3.67 Bn
Debt/Equity (Qtr) 1.05
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About

IDACORP Inc., commonly known as IDACORP, operates in the utilities industry. It is a holding company that primarily engages in the generation, transmission, distribution, sale, and purchase of electric energy and capacity through its subsidiary, Idaho Power. IDACORP's main business activities involve the production and distribution of electric power. The company operates in the United States, specifically in southern Idaho and eastern Oregon. Its operations are discussed further in Part II, Item 7 - MD&A - "Results of Operations - Utility Operations." The...

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Investment thesis

Bull case

  • Healthy cash reserves of 333.21M provide 2.87x coverage of short-term debt 116.30M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 600.50M provides exceptional 918.20x coverage of minority interest expenses 654000, showing strong core operations.
  • Strong tangible asset base of 10.08B provides 2.75x coverage of total debt 3.67B, indicating robust asset backing and low credit risk.
  • Cash position of 333.21M provides exceptional 509.49x coverage of minority interest expenses 654000, indicating strong liquidity.
  • Robust tangible asset base of 10.08B provides 133.97x coverage of working capital 75.21M, indicating strong operational backing.

Bear case

  • Operating cash flow of 600.50M barely covers its investment activities of (892.01M), with a coverage ratio of -0.67, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 600.50M provides thin coverage of dividend payments of (187.41M) with a -3.20 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of (410.16M) provides weak coverage of capital expenditures of 1.01B, with a -0.41 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 600.50M provides minimal -39.29x coverage of tax expenses of (15.28M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 496.59M show weak coverage of depreciation charges of 249.74M, with a 1.99 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Utilities - Regulated Electric
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NEE Nextera Energy Inc 191.44 Bn 28.01 6.98 95.62 Bn
2 SO Southern Co 97.42 Bn 30.98 4.46 73.75 Bn
3 AEP American Electric Power Co Inc 64.38 Bn 33.83 4.24 0.00 Bn
4 DUK Duke Energy CORP 56.47 Bn 30.61 3.87 89.65 Bn
5 EXC Exelon Corp 48.53 Bn 17.53 2.00 50.08 Bn
6 ETR Entergy Corp /De/ 45.74 Bn 25.29 3.59 30.45 Bn
7 PEG Public Service Enterprise Group Inc 43.93 Bn 35.35 4.41 23.51 Bn
8 XEL Xcel Energy Inc 41.10 Bn 37.21 3.75 35.52 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.91 1.01
EV to Cash from Ops. EV/CFO 26.13 12.45
EV to Debt EV to Debt 2.50 171.92
EV to EBIT EV/EBIT 22.94 19.12
EV to EBITDA EV/EBITDA 18.22 15.67
EV to Free Cash Flow [EV/FCF] EV/FCF -112.89 -28.25
EV to Market Cap EV to Market Cap 1.27 1.84
EV to Revenue EV/Rev 5.58 4.72
Price to Book Value [P/B] P/B 2.58 2.60
Price to Earnings [P/E] P/E 28.01 18.53
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.70 1.94
Dividend Payout Ratio % Div Payout % (Qtr) 58.80 62.23
Dividend per Basic Share Div per Share (Qtr) 3.44 2.02
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -45.44 -218.37
Interest Coverage Int. cover (Qtr) 2.56 2.83
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -0.27 -68.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -22.14 73.92
Dividend Growth (1y) % Div 1y % (Qtr) 38.15 4.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 20.75 15.47
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 8.63 13.33
EBIT Growth (1y) % EBIT 1y % (Qtr) 8.36 15.81
EBT Growth (1y) % EBT 1y % (Qtr) 0.91 19.29
EPS Growth (1y) % EPS 1y % (Qtr) 7.93 21.26
FCF Growth (1y) % FCF 1y % (Qtr) 7.81 -35.52
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.99 11.97
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.18 0.22
Cash Payout Ratio Cash Payout (Qtr) 0.12 0.11
Cash Ratio Cash Ratio (Qtr) 0.38 0.98
Current Ratio Curr Ratio (Qtr) 1.09 2.72
Debt to Equity Ratio Debt/Equity (Qtr) 1.05 1.45
Interest Cover Ratio Int Coverage (Qtr) 2.56 2.83
Times Interest Earned Times Interest Earned (Qtr) 2.56 2.83
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 41.30 37.94
EBIT Margin % EBIT Margin % (Qtr) 27.50 316.94
EBT Margin % EBT Margin % (Qtr) 16.75 14.36
Gross Margin % Gross Margin % (Qtr) 35.40 41.20
Net Profit Margin % Net Margin % (Qtr) 17.60 12.57